OUT OF STOCK is a message no shopper wants to see – least of all when they’re on the annual hunt for holiday-related items. This year, suppliers and retailers are facing a number of shortages due to logistics issues, pandemic-induced supply chain issues, ingredient shortages, and rising costs of production. That means, no matter how prepared many stores are, there are going to be shortfalls in everyone’s favorite lines. Several large companies have recently issued public statements that they are having difficulties keeping up with demand, while others have reported “significant and unprecedented cost inflation.”
Reading the numerous headlines about stock shortages and rising costs, especially in the lead-up to the multitude of upcoming holidays is enough to make the eyes water. But it’s not all doom and gloom. From the spooky season to Thanksgiving, Christmas, and beyond, there are strategies smart retailers are using to inspire shoppers and keep shelves looking chock-full.
What Do Empty Store Shelves Tell Customers?
When consumers see empty shelves or missing products, they inevitably go into panic mode. Panic buying – once an obscure expression reserved for researchers and psychologists – became a household term during the pandemic. It’s been proven to be the default mode for shoppers, with an added group-think factor thanks to the 24-hour news cycle and sensationalist social media sharing. Real or imagined, a perceived lack of resources (in this case, Halloween candy, fall decorations, or the Thanksgiving turkey) triggers an impulse in consumers to divert from typical shopping behaviors. This festive season, with the scarcity levels of the pandemic fresh in our minds, bare shelves will signal an automated response in buyers, taking them right back to the days of toilet paper and dried spaghetti hoarding. In turn, this hoarding accelerates scarcity. For retailers, that can exacerbate stock shortages or, equally worryingly, cause shoppers to switch stores and shift loyalty.
Product shortages and delivery delays can cause merchandising issues all year round, but with the festive season upon us, the problem becomes all the more dramatic. Retailers need to implement strategies now, to avoid empty store shelves and keep consumer confidence up. Thankfully, there are a few easy-to-implement tactics stores can use to achieve this.
Merchandising Tips to Overcome Product Shortages
Since 2019, Explorer Research has conducted an annual holiday shopping study to help brands better understand how Americans are planning and shopping for the holiday season. Halloween through New Year’s Eve is the busiest season for many retailers, and yet the pandemic threw a giant spanner in the works for the last few years. Finally, the silly season seems almost back to normal in 2022, with restrictions behind us and consumers excited to get back to their regular holiday traditions. But for many retailers, the hangover of the pandemic is ever-present. Supply chain shortages and rising costs will mean product shortages and bare shelves if stores fail to take a novel approach this year. Here are our tips for overcoming stock shortages and keeping stores and shelves looking festive the entire holiday season and beyond:
Creative display arrangements: Merchandising is all about making the stock you’ve got look great. Even with product shortages, creatively curating related materials will help fill out sections and give the shopper the impression of abundance. Halloween costumes paired with Halloween candies in a comprehensive themed section can help to fill out a merchandising display. Using holiday candy alternatives will also assist in overcoming shortages of sweet treats. Most events have multiple components that can be merchandised collectively to bulk out displays. Thanksgiving displays should include food, fall home decorations, host gifts, food storage, guest entertainment (board and card games, for example), and accessories for those who travel.
Shallow end caps and printed in-aisle displays: These materials are shallower or product-free and keep sections looking fuller, brighter, and more appealing. They’re also easier to restock and keep tidy. Retailers and brands should work together to create merchandising alternatives like these for the holiday season and potentially into the new year, for a creative approach to stock shortfalls that not only look great but generate the right kind of atmosphere in stores.
Adaptability is key: Retailers should be prepared in advance to adapt the overall footprint of a seasonal display, based on product availability. This way, shelves look full regardless of what’s in stock. A fluid approach to event display footprints and planograms allows stores to tackle any shortages as they appear – keeping on top of things without feeling beholden to a one-size-fits-all approach.
Merchandising fallback plans: Retailers should have go-to fallback plans (yes, more than one). If shipments are delayed or stocks fall short, multiple iterations of merchandising displays, created in advance, will reduce the time it takes to make adaptations if certain components don’t arrive on time (or at all). Substituting comparable items or adapting signage are examples of these fallback options. The ultimate goal is to help shoppers with what they need and delight them with options they hadn’t even considered.
Timing is everything: According to our research, shoppers are preparing for events earlier than ever. Where shortages in decorations, Halloween candy, or Thanksgiving food are a potential issue, preparing in advance will make the world of difference. Brands and retailers should be thinking about the upcoming holiday events, as far in advance as possible, and considering how to bridge the gap by initiating rollouts earlier than usual.
Don’t Lose Your Head This Festive Season
With a couple of hard years behind us, supply chain shortages and inflationary pressures seem to be kicking retail while it’s already down. But with an adapted approach, some creativity, and preparedness to do things differently, we can ride the wave together and come out the other side unscathed. These merchandising tips are your key to success this holiday season and will ensure future shortfalls are that much easier to overcome.
